First Nations chiefs told the Prime Minister Tuesday their lives are constricted by “layer upon layer of bureaucracy.” In Kasabonika Lake First Nation, an overflowing sewage plant and limited electrical capacity are examples of that.

The First Nation, located 800 kilometres north of Thunder Bay in northwestern Ontario, estimates it’s missing out on more than $9 million worth of jobs and economic opportunities as Aboriginal Affairs delays funding for its sewage plant and diesel generator.

Waste water began spilling into the lake from the community’s sewage plant more than a decade ago. A series of letters provided to CBC by the First Nation show a cycle of Aboriginal Affairs funding studies to fix the problem. It then told the First Nation there is no money to pay for the fix.

'We just go ahead and do it'

Kasabonika Lake First Nation built an illegal trench, off-reserve, where it’s trucking some of its sewage to keep it out of the lake.

“We don’t have time to wait, we just go ahead and do it, otherwise we’d be killing our own people,” said Abe Wabasse, the administrator for the sewage plant.

Still, Wabasse worries about the overflow from the plant that runs into the lake where people get their drinking water.

The First Nation provided a similar series of letters from Aboriginal Affairs pertaining to its diesel generator. Diesel is used to make electricity in remote First Nations that are not connected to the hydro grid.

Aboriginal Affairs funded a $61,000 feasibility study in 2009 and $865,000 for design work in 2010. Kasabonika Lake First Nation went ahead and spent more than $1 million on the components for a new generator last year. They’re sitting in shipping containers on the reserve, after Aboriginal Affairs said the construction funds were no longer available.

On the Kasabonika First Nation, about 940 people live on reserve. Only 137 of the homes are deemed adequate. (Jody Porter/CBC)

No infrastructure means no new homes

“So, right now, if we don’t get those dollars until 2013 or 2014, we won’t be doing any housing,” said band councillor Gordon Morris.

With no new electrical capacity and no sewage capacity, no new homes can be built in Kasabonika Lake.

But families keep expanding. About 940 people live on reserve, and only 137 of the homes are deemed adequate.

Elders Mina and Steven Anderson moved into the un-insulated shed in their yard so their children and grandchildren can have their house.

Water jugs at Steve and Mina Anderson's one-room shack, which has no running water. (Jody Porter/CBC)

It’s not just housing being restricted by the lack of infrastructure. A new business centre has been scrapped and the First Nation laments its inability to capitalize on a regional mining boom.

Hydro One wrote a letter supporting Kasabonika’s push for a new diesel generator and called the First Nation “well-managed and progressive.”

Morris said it’s difficult keeping that reputation without help for the capital projects from Aboriginal Affairs.

“It’s just going to get worse,” Morris said. “That’s all I can say, because we have no funding, even though our First Nation has been very innovative in accessing funds.”